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BoJ policymaker Ayano Sato backs gradual rate hikes
Sato also noted price risks are slightly higher due to rising oil costs tied to the Middle East conflict, adding a mildly hawkish tone.
The Bank of Japan policymaker Ayano Sato said she supports raising interest rates in several stages, with adjustments made gradually, according to FXStreet citing Reuters.
Sato said there should be no preset pace for future rate increases, and emphasized that the BoJ must set monetary policy independently while still aligning with the administration’s proactive fiscal policy.
FXStreet also highlighted that Sato’s remarks pointed to price risks tilting slightly higher, with rising oil costs from the Middle East conflict cited as a factor.
Taken together, the comments signal cautious normalization rather than aggressive tightening, a stance FXStreet said can help support the yen while limiting sharp repricing.